Openwave CEO resigns, company explores ‘strategic alternatives’

Openwave Systems Inc. is up for sale.
The Redwood City, Calif.-based developer announced the resignation of CEO David Peterschmidt and said it retained Merrill Lynch as a financial advisor to explore strategic alternatives including a sale. Peterschmidt was replaced by Robert Vrij, who formerly served as vice president of worldwide field operations.
Openwave, which develops wireless Web browsers and other mobile software, also withdrew its prior outlook for the third and fourth quarters due to “inherent uncertainty” during a current product transition. The company forecasted revenue of $65 million to $70 million for the quarter ending March 31, substantially below expected revenues of $87.5 million.
The announcement comes amidst a proxy battle with Harbinger Capital Partners, Openwave’s second-largest shareholder. The New York-based investment firm owns roughly 10.6 percent of Openwave, and has publicly fought in recent months to reconfigure the company’s board.
Shares of Openwave have floundered since May as the company has dealt with disappointing earnings and a federal investigation into past policies regarding stock-option grants. The stock initially rallied on Friday’s news but by mid-day had lost about 2 percent, or 17 cents, to trade at $8.72 a share.